Certified Internal Auditor (CIA) Part 1: Business Acumen — Question 143

According to IIA guidance, which of the following statements regarding ethics is true?

Answer options

• A. Business ethics may vary within an organization with both domestic and foreign operations.
• B. Business ethics are universal in nature and organizations across the world are expected to comply with similar standards.
• C. A business ethics policy for an organization is established solely to direct the behavior and expectations of employees.
• D. Business ethics of an organization must remain independent from those of suppliers, customers, and business partners.

Correct answer: D

Explanation

The correct answer, D, highlights the importance of maintaining distinct ethical standards for an organization, separate from those of external stakeholders. Option A is incorrect because while variations can exist, the statement does not align with the guidance's emphasis on independence. Option B is wrong as it contradicts the notion of independent ethical frameworks. Option C is also incorrect, as a business ethics policy should encompass broader ethical considerations beyond just employee conduct.